BERLIN — Sky Deutschland announced plans on Thursday to raise €300 million ($394 million) this year to finance investments in exclusive new content and innovative new services.
News Corp. will backstop the funding, which Sky plans to raise in two steps. The company is looking to secure a minimum of $130 million by March through a rights offering, a private placement or a shareholder loan and the rest by September. It may also issue a convertible bond as part of the process.
Sky recently inked an exclusive three-year multi-platform pay TV deal with Warner Bros., and has also beefed up its high-definition TV offerings.
In 2011, Sky managed to narrow its losses before interest, taxes, depreciation and amortization by 42% to $203 million, while revenue climbed 17% to $1.4 billion.
Sky also surpassed the 3 million subscriber mark.
“In 2011 we delivered a number of key milestones in building our business for a profitable future,” said Sky Deutschland CEO Brian Sullivan. “Overall our results reflect the best performance in the history of the company: we are attracting new customers at the fastest pace ever, and customer satisfaction and recommendation levels are at all-time highs. … To have over 3 million customers actively choosing Sky is a fantastic achievement, but we expect more to come and there is still more to do. The additional funding announced today will support us to further drive these efforts, to continue building an exciting service for our customers and a valuable business for our shareholders.”
Sullivan expects Sky’s performance to continue to improve this year and “to be significantly better than 2011.”